Re: Global Securities Group
[Thanks to Kerry]
These are various sightings of Global Securities Group...
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sptimes.com
California man files suit against Eckerd College
By DAVID BALLINGRUD
© St. Petersburg Times, published July 11, 1998
ST. PETERSBURG -- A California businessman has accused Eckerd College and its former vice president for finance of participating in a fraudulent investment conspiracy that cost him $312,500.
The college says it did nothing wrong. Arthur Ranson III, chairman of Eckerd's board of trustees, said the college is simply "a target of opportunity" for plaintiff Lewis Hutchins, a resident of Campbell, Calif., near San Jose.
In a suit filed in Los Angeles two years ago, Hutchins alleges that in 1994 he was persuaded by James Christison, now retired but then Eckerd's vice president for finance, to invest $300,000 in a "foolproof" plan. The money was to be pooled with cash from other investors -- 20 shares of $150,000 each -- for a total of $3-million.
The money was to be used to purchase a line of credit, which in turn was to be collateral in a series of investment trades over a one-year period. Each trade was to earn the investors a sum of money. Hutchins bought two shares, plus $12,500 for expenses.
The suit does not detail how the alleged conspiracy worked, but it alleges that Christison, as a representative of Eckerd, continued to "fraudulently and falsely" reassure Hutchins that the trades had occurred or would occur, with profits to follow.
Hutchins' attorney, Jeffrey Leon, of Oakland, Calif., declined to comment on the suit, as did James Miller, Eckerd's lawyer in Los Angeles.
Like many small, independent colleges, Eckerd has scrambled in recent years to balance its budgets and maintain academic standards. As vice president for finance, Christison was heavily involved in that.
He and President Peter Armacost have won praise for being innovative and have been criticized for being too entrepreneurial in their efforts. Neither man could be reached on Thursday or Friday.
Ranson, chairman of Eckerd's board of trustees, said Eckerd was drawn into the case because of its "deep pockets."
"I'm not saying he (Christison) did anything improper, but whatever he did was not under the aegis of the college," Ranson said.
Hutchins' suit seeks the return of his investment, and seeks punitive damages from Christison and the college. An October trial date has been set.
Also named as defendants in the suit are Karifa Capital Corp., Manor Financial Services, Columbus Financial Inc., Nevis Associates Ltd. and Global Strategies Group. Also named are several individuals, including Philip Thomas and Hugh Silbert.
Without providing details, the suit charges that defendants Thomas and Silbert used "false pretenses" to induce Hutchins, Christison and Eckerd to release the money to them.
The suit describes Silbert as a New York businessman and Thomas as a California businessman and an officer of Columbus Financial and Nevis Associates. Karifa Capital is described as a Cayman Islands company doing business in the United States and the Britain.
Attached to Hutchins' suit is a July 20, 1994, note from Christison to Hutchins, in which Christison appears to outline the deal:
"Yesterday the college was invited to participate in a syndication which requires $162,500 ($150,000 plus expenses) with a net return to the investor of $500,000 in one year.
"The college cannot use its own funds for this transaction," Christison wrote, "so I need to find investors that will share profits with the college."
The note continues, "due to the urgency of the situation you need to get back to me right away and let me know if you want to go forward. I will reserve a position in the syndicate and we can work out the legal details later."
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The NASDR knows of them...
nasdr.com
Global Strategies Group, Inc. (San Francisco, California), Jon Francis Williams (Registered Principal, Oakland, California) and Morton Kirschenbaum (Registered Principal, San Mateo, California) submitted an Offer of Settlement pursuant to which they were fined $18,000, jointly and severally. Without admitting or denying the allegations, the respondents consented to the described sanctions and to the entry of findings that the firm, acting through Williams and Kirschenbaum, used the instrumentalities of interstate commerce to effect transactions in securities while failing to maintain its minimum required net capital. The findings also stated that the firm, acting through Kirschenbaum, permitted two individuals to act as representatives and principals of the firm without being registered with the NASD. The NASD found that the firm, acting through Williams, engaged in the securities business without complying with the provisions of SEC Rule 15c3-1(a)(2)(vi) in violation of its agreement with the NASD, in that it acted as a broker/dealer in connection with purchases and sales of securities from South American and United States broker/dealers; maintained securities in its error account in connection with cancels and rebills that were not cleared on a timely basis; executed more than 10 principal trades in its inventory account; and accepted customer securities for delivery to clearing. The NASD also determined that the firm, acting through Kirschenbaum and Williams, effected sales of securities to customers at prices that were not fair and reasonable taking into consideration all relevant circumstances, including market conditions at the time of the transactions, the expense involved, and the fact the firm was entitled to a profit. Furthermore, the NASD found that the firm, acting through Kirschenbaum, failed to establish and enforce its written supervisory procedures.
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Apparently, at one time they were MMs...
#reply-2523924 |
